• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

More Than 50 Percent of Industry Volume in the Electrical, Plumbing, and Hardware Industry Passes Through Firms With Annual Sales Less Than $20 Million

Posted on: Thursday, 13 April 2006, 12:00 CDT

Research and Markets (http://www.researchandmarkets.com/reports/c35674) has announced the addition of Electrical, Plumbing, and Hardware Distributors - Industry Profile to their offering.

The wholesale distribution of hardware, plumbing, heating, and electrical supplies is a $200 billion industry with about 30,000 outlets. Big distributors have annual sales of several billion, including Graybar, TruServ, and Wesco. But hundreds of midsized firms have sales of $20 to $100 million, and more than 50 percent of industry volume passes through firms with annual sales less than $20 million.

Sales are driven by demand from customer industries, notably construction, electrical distribution, telecommunications, and hardware retailing. Profitability depends largely on efficient inventory management and control of accounts receivable. Small operators can compete successfully by stocking specialty products, stocking all the parts their particular customers need, or delivering superior service.

Distributors are middlemen between manufacturers and end-users. The companies in this industry buy large quantities from hundreds of manufacturers, then "break bulk" and resell them to thousands of customers, thereby allowing customers to buy small quantities of products from many different manufacturers. In addition to selling products, many distributors provide technical knowledge and support and some provide maintenance and repair. A specialty distributor of fasteners (screws, nuts, bolts) such as Questron buys some 100,000 items (stockkeeping units, or SKUs) from 1,000 manufacturers and sells to about 6,000 customers. Electrical supplier Wesco buys some 200,000 items from around 6,000 suppliers and sells to about 130,000 customers.

These easy-to-use, quarterly industry profiles provide you with the industry analysis you need to better understand any particular business. They synthesize information from hundreds of sources into an easy to digest format, giving you invaluable information about your target market, highlighting critical industry statistics and issues, changes that have taken place since the last quarterly update and key concerns that can have negative or positive impacts on investments. Utilizing the financial and forecasting data while simultaneously learning from educational business overviews can help you and your customers plan more effectively and invest wisely.

These industry reports will educate your sales team on critical industry trends in target markets, empowering them to create more strategic proposals. These industry reports are also essential for professional organizations that want make savvy, educated business decisions.

Key topics covered include:

-- Industry Overview

-- Quarterly Industry Update

-- Business Challenges

-- Trends and Opportunities

-- Call Preparation Questions

-- Financial Information

-- Industry Forecast

-- Website and Media Links

-- Glossary of Acronyms

Companies mentioned:

-- Graybar

-- TruServ

-- Wesco

For more information visit http://www.researchandmarkets.com/reports/c35674

Source: Business Wire

More News in this Category